MULTI-CRITERIA DECISION-MAKING METHODS FOR SUPPLIER SELECTION: A LITERATURE REVIEW

Abstract

A firm's multi-criteria decision-making (MCDM) process is important because of its need to select and work with various suppliers. The process identifies the problems associated with selecting the supplier determining convenient criteria, expressing interactions clearly, and usage. These are all suitable methods for finding a solution to these MCDM problems. Considering more than one criterion (and even the sub-criteria of these criteria) during supplier selection makes the selection uncertain. Conventional methods cannot generate a realistic solution to the problem. Using MCDM methods considerably simplifies solving the problem, and enables decision-makers to make better decisions. In this study, a literature review was performed on MCDM methods used between 2001 and 2014 for the supplier selection problem. MCDM methods used in supplier selection are categorised into three main methods, and a summary table of the reviewed studies is presented.